PUBLIC TESTIMONY WILL BE HEARD THURSDAY MORNING FROM APPROXIMATELY 10:00 a.m. TO 12:00 noon. Sign-up sheets will be available starting at 7:30 a.m.

Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Hamilton following the meeting.

MEETING SCHEDULE AND AGENDAS

Full agendas with references are sent to all University of Alaska campus libraries. For further information, please call the Board of Regents' Office at 474-7908 or e-mail SYBOR@alaska.edu.

MEETING SCHEDULE

Times for board meetings are subject to modification within the June 8-9, 2000 timeframe.

Thursday, June 8, 2000

8:00 a.m. - 10:00 a.m.
Full Board will meet in Room 107 for the President's Report, legislative summary and election of officers.

10:00 a.m. - 12:00 noon
The Full Board will meet in Room 107 to hear public testimony.

12:00 noon - 1:00 p.m.
LUNCH BREAK. During this break, President Hamilton will hear a report on UAA Safety Issues in the Canary Room. Lunch will be provided for those board members who wish to attend.

1:00 p.m. - 5:00 p.m.
Finance, Facilities, and Land Management Committee will meet in the Canary Room. Members of the Academic and Student Affairs Committee are invited to attend the first hour of this meeting to discuss issues of common interest.

12:00 noon - 1:30 p.m.
Regents and invited guests will attend a luncheon for Dr. Carlyle Haaland, President of Sheldon Jackson College, in the Canary Room.

1:30 p.m. - 2:30 p.m.
Committee of the Whole will meet in Room 107.

2:30 p.m. - 5:30 p.m.
Full Board will meet in Room 107. An Executive Session is scheduled as one of the last items of business and is expected to last approximately two hours.

5:30 p.m. Adjourn

Messages can be left at University Commons: phone 751-7200, FAX 751-7281. Messages should indicate that they are for participants in the Board of Regents' meeting.

MEETING SUMMARY

The following is a summary of actions, reports, and presentations before the Board of Regents at this meeting:

ACTION ITEMS:
1. Board of Regents' Officer Elections (Full)
2. Approval of a Center for Community-based Service, Learning, and Research at the University of Alaska Anchorage (A&SA)
3. Approval of a Master of Science Degree Program in Global Supply Chain Management at the University of Alaska Anchorage (A&SA)
4. Approval of a Master of Arts Degree Program in Rural Development at the University of Alaska Fairbanks (A&SA)
5. Approval of an Accounting Technician Certificate Program at the University of Alaska Fairbanks (A&SA)
6. Approval of Deletion of the Master of Arts in Teaching Program at the University of Alaska Fairbanks (A&SA)
7. Approval of the Reorganization of Schools and Colleges at the University of Alaska Fairbanks (A&SA)
8. Project Approval for the University of Alaska Anchorage Library, Authorization to Bid and Award Contracts for the Parking Garage and Walkway, and Authorization to Proceed with the Design of the Library Renovation and Addition (FF&LM)
9. Approval of Increased Total Project Costs for the University of Alaska Fairbanks Rasmuson Library Deferred Maintenance and Renovation Project (FF&LM)
10. Project Approval for the University of Alaska Fairbanks Geist Road/Loftus Road Campus Entrance Project and Authorization to Proceed (FF&LM)
11. Project Approval for Increased Funding of the University of Alaska Fairbanks/Fairbanks1 North Star Borough Hutchison Career Center Renovation and Addition Project (FF&LM)
12. Acceptance of the FY2001 Capital and Supplemental Appropriations (FF&LM)
13. Modification of Regents' Policy to Address Capital Planning Needs of the University (FF&LM)
14. Modification of Regents' Policy to Address Approval of Capital Projects (FF&LM)
15. Authorization to Proceed with Implementation of the Alaska Higher Education Savings Trust and Modification of the Advance College Tuition Program (FF&LM)
16. Approval of Revisions to Regents' Policy 04.09 - Nondisciplinary Terminations and Financial Exigency (HR)
17. Approval of Revisions to Regents' Policy 04.03 - Recruitment and Staffing (HR)
18. Approval of the FY2001 Annual Audit Plan (Audit)
19. Approval of Motion to Table Consideration of Tuition Rate Adjustments (COW)
20. Approval of FY2001 Student Government Budgets (COW)
21. Approval of the Distribution Plan for the FY 2001 Operating Budget (COW)
22. Legislative Summary (Full)

PRESENTATIONS:
1. Presentation on the Air Force ROTC Program at the University of Alaska Anchorage (COW)

"The Academic and Student Affairs Committee adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda

A. Approval of a Center for Community-based Service, Learning, and Research at the University of Alaska Anchorage
B. Approval of a Master of Science Degree Program in Global Supply Chain Management at the University of Alaska Anchorage
C. Approval of a Master of Arts Degree Program in Rural Development at the University of Alaska Fairbanks
D. Approval of an Accounting Technician Certificate Program at the University of Alaska Fairbanks
E. Approval of Deletion of the Master of Arts in Teaching Program at the University of Alaska Fairbanks
F. Approval of the Reorganization of Schools and Colleges at the University of Alaska Fairbanks

IV. New Business

A. Discussion Regarding a Request to Consider Providing Coed Rooms or Suites in University Housing
B. Discussion on Providing Special Consideration for Alaska High School Graduates Who Matriculated at the University of Alaska Prior to Institution of the University of Alaska Scholars Program
C. Discussion on Recent Campus Enrollment Trends
D. Report on President Hamilton's Meeting with Extended Campus Directors
E. Discussion Regarding Commencement Dates for University of Alaska Anchorage, University of Alaska Fairbanks, and University of Alaska Southeast

V. Future Agenda Items
VI. Adjourn

This motion is effective June 8, 2000."

III. Full Board Consent Agenda

A. Approval of a Center for Community-based Service, Learning, and Research at the University of Alaska Anchorage - Reference 1

The University of Alaska Anchorage requests approval to establish the Center for Community-based Service, Learning, and Research. The Center is proposed as a distinct entity within UAA in order to focus activity on community service and applied research missions and support development of more service learning.

The mission of the Center will be as follows:
The Center connects academic programs with community service so that students, faculty, and community partners can forge linkages between theory and practice, between knowledge and action, and between the University's academic resources and the community's development.

The Center will have four primary purposes. It will serve:
· as a clearinghouse for faculty interested in community-based, service learning pedagogy and research;
· as a front door to the university for community leaders with project ideas, proposals, and needs;
· as a catalyst for students seeking engagement or relevant learning experiences beyond the traditional classroom; and
· as a promoter and generator of participatory action research to help meet the applied research needs of the community.

In the development of the center UAA consulted with community service groups in Anchorage and the state as well as with Portland State University, which has developed a similar well-recognized program. The proposal has been reviewed and recommended by community groups, the faculty and administration at UAA, and the Systemwide Academic Council (SAC). A description of the Center is provided in Reference 1.

Management and Organization

The Center will have four major areas of responsibility:
· community outreach (the direct community partnering and service arm);
· community-based service learning (the instructional arm);
· applied, action research; and
· student leadership.

The Center will report to the Office of Academic Affairs and be accountable to the Provost.
· The center director will be a UAA faculty member. The Chancellor, designated with the authority to appoint center/institute directors in Regents' Policy, has delegated appointment authority to the Provost.
· Faculty may be associated with the Center by teaching courses using community-based or service learning methods, or by participating in assessment, grant-writing, applied research, and other special projects.
· Externally-funded grant projects, such as the existing HUD-funded Community Outreach Partnership Center project, will be housed in the center and managed by Program Managers or Principal Investigators as specified in the individual grant proposals.
· Graduate and undergraduate students will be employed in externally funded leadership development and service learning-related projects, as student research assistants, and in day-to-day Center operations.
· An advisory board recruited from faculty, community partners, and students will be appointed to generate and maintain crucial community support and to ensure that the Center remains responsive to the needs of both community and academe.

Financial Feasibility

The Office of Academic Affairs will provide core infrastructure support. Initial support for the Center consists of a $75,000 reallocation within Academic Affairs plus the executive loan of United Way of Anchorage directors with salaries estimated at $30,000. Most research and projects will be grant-funded and self-supporting. One of the Center's most promising features will be its ability to leverage external funding and return greater support for the University. Risk associated with the possibility of closure or retrenchment will be minimized by renewable term appointments for staff.

More detail regarding the proposal is provided in Reference 1; a complete program proposal and an inventory of current community based and service learning will be available at the meeting.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve formation of the Center for Community-based Service, Learning, and Research at the University of Alaska Anchorage, with the stipulation that it be reviewed by the Board of Regents in five years for continuation. This motion is effective June 8, 2000."

B. Approval of a Master of Science Degree Program in Global Supply Chain Management at the University of Alaska Anchorage - Reference 2

(Note: at the writing of this agenda, the Systemwide Academic Council was not able to complete such review of this program as was necessary for recommendation. If review is not completed by the time of the Committee's meeting, approval will be sought at the October 2000 meeting.)

In response to the urging of and support from the Municipality of Anchorage, the University of Alaska Anchorage has begun development of a logistics initiative. UAA added an emphasis in logistics to its BBA program this past academic year. To further develop the initiative, UAA requests approval to offer a Master of Science in Global Supply Chain Management beginning spring semester, 2001.

Program Description
"Logistics," from a business perspective, refers to the movement of material and component parts into and within a firm and the distribution of the final products to customers. "Supply chain management" is a broad extension of this concept: its goals are timely delivery, competitive pricing, and mobility and flexibility - against a backdrop of an explosion of innovative transportation services and a revolution in information technology. Logistics concepts are also applicable to activities such as those undertaken by the military services in Alaska.

The Master of Science in Global Supply Chain Management to be offered by the College of Business and Public Policy:
· is designed for part-time delivery to provide advanced education for middle to senior level business managers and professional logisticians.
· will produce graduates grounded in management theory, logistics, integration, modern information systems, knowledge management and ethical standards effecting the efficient design and implementation of a global supply chain system.
· focuses, in contrast to most other master's programs, on global issues with an emphasis on information technology and managerial leadership.

The 30-credit program will be delivered to cohorts of 20 students in a series of five 6-credit courses, offered one per semester through distributed-learning media and weekend group sessions.
· Students engage weekly in individual study and teamwork, networking through the Internet with interactive group-ware.
· Assigned projects are to be associated with the participant's firm.
· In keeping with the interdisciplinary nature of logistics, instruction will be provided by teams of instructors, including visiting professors from other universities.

Most master degree programs in logistics are on the east coast, where only one, new this year and offered from an engineering perspective, has a global orientation. No program in the WICHE region specifically targets working middle to senior level logistics managers. In addressing a specific niche, the UAA program is already attracting the interest of both students and faculty, nationally and internationally.

The program was designed in consultation with industry and military logistics entities serving a global clientele, and with faculty from selected national and foreign logistics programs. Many of these consultants came together at a special session for program design at the 1999 Top of the World Cargo Conference.

This program complements, rather than competes with, the current UAA and UAF MBA programs. While the UAF School of Management has been kept apprised of the development of logistics programs at UAA, UAF is not planning to participate in delivery at present.

Meeting State Needs
· Aided by a strategic location relative to Europe, Asia, and the Lower 48, globally oriented logistics operations are the fastest growing sector of the Anchorage economy.
· An environmental scan of over one hundred firms was conducted to ascertain the demand for various programs and topics in logistics. Access to a master's program to ensure an educated executive workforce equipped with the most modern management skills was highly rated by ~53 percent of the respondents.
· As a demonstration of need and support for logistics programs, the Municipality of Anchorage Assembly is providing $125,000 per year for three years, if matched by industry. Already, Alaska Airlines, CSX Lines, Lynden, Inc., United Parcel Service, FedEx, and Totem Ocean Trailer Express have agreed to contribute. The total pledge to date exceeds $900,000.

Students
· The program is designed for middle to senior level business managers and professional logisticians able to demonstrate the equivalent of holding a baccalaureate and at least seven years responsible experience in some function of supply chain management.
· Cohorts of 20 students will be admitted each semester beginning Spring 2001. By 2003, 80-100 students could be enrolled at any one time, with ~40 graduating each year.
· Even without advertising, more than 20 students have expressed interest in joining the first cohort. By being attractive to a market beyond Anchorage, the program should be able to be sustained after the initial local demand is met.

Research/Service
Especially with the requirement that student projects will be oriented to the student's firm, faculty are anticipated to become more engaged in research and service directed toward Alaskan-based logistics operations.

Fiscal Impacts
Faculty and Staff
· A core of three logistics faculty is needed for the baccalaureate and master's programs. One was hired in Fall 1999, recruitment for another is underway, and the third will be sought during the coming year. Initiation of the master's program in Spring 2001 is dependent upon hire of the second faculty member.

Technology, Space, Specialized Facility, and Other Resources
· The Municipality/industry foundation funding was used to provide $15,000 in FY00 for books and periodicals. $75,000 in total is anticipated to be provided the library through FY04.
· Office space for new faculty is available. No new classrooms will be needed for program delivery.
· The College has a modern computer laboratory; other technology needed for program delivery is also currently available.

To fully cover program expenses:
Additional costs anticipated for promoting the program, cross-training existing faculty in logistics, and developing cooperative relationships with industry and other universities are intended to be covered by the funding donated by the Municipality and the logistics industry.

UAA requests approval to charge students such fees as are necessary to cover the full cost of the program beyond that covered by the present level of funding, to include such expenses as may be needed for staff costs, books and materials for students, software and special technology needed to deliver the degree, any increases in faculty beyond the initial core faculty, cost for visiting professors, faculty travel, faculty and staff development, and advertising.

A description of the program is provided in Reference 2; the complete program proposal documentation will be available at the Board meeting.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents:
· approves a Master of Science Degree Program in Global Supply Chain Management for the University of Alaska Anchorage, with the stipulation that the program be reviewed by the Board of Regents in five years for continuation, and
· approves charging three times the established graduate tuition rate for the charter cohort of students and, subject to approval of the chancellor and the president, four times the established tuition rate for subsequent cohorts.
This motion is effective June 8, 2000."

C. Approval of a Master of Arts Degree Program in Rural Development at the University of Alaska FairbanksReference 3

The University of Alaska Fairbanks requests approval to offer a Master of Arts in Rural Development. The program will be delivered by the Department of Alaska Native and Rural Development in the College of Rural Alaska. Currently, the department offers a Bachelor of Arts in Rural Development as well as non-academic training.

Program Description

A 30-credit program consisting of
15 credits: Core courses
9-12 credits: Elective courses (up to six at 400-level with graduate committee approval)
6-9 credits: Applied community development project approved by graduate committee
OR
MA thesis

· A cornerstone for the program will be a 10-day "Circumpolar Indigenous Leadership Symposium," a required 3-credit course held in the fall semester each year.
· Courses strike a balance between comprehensive interdisciplinary understanding of issues in the rural north and the applied skills needed for effective community leadership.
· The program is scheduled for implementation in the fall semester, 2000. Students will be recruited by direct mailings to Rural Development baccalaureate students, Alaska Native corporations and organizations, and government agencies.

Major program objectives:
· Educate leaders for indigenous and other rural Alaska communities who understand the dynamic interrelationship of those communities with global economy and who are competent to fill community leadership and management positions. Courses provide both a broad overview of regional, national, and global forces influencing rural communities as well a specific analytical, communication, and information technology skills necessary for leadership in a rapidly changing environment.
· Provide a quality program of advanced study for place-bound students in rural communities, combining face-to-face seminars and the development of a statewide network of rural leaders with cutting-edge distance delivery of instruction. Courses will be provided by on-campus classes and by Internet, audioconference, and other means to combine face-to-face and distance delivery formats.
· Build strong ties to business and community leaders in rural Alaska, including creation of professional development plans for indigenous employees seeking career advancement. For each student who is concurrently employed the program will seek to create a professional development plan with the employer. This plan will include financial support in the form of tuition and other expenses, as well as paid leave for the student/employee to attend required seminars. This model has been successful for the baccalaureate program. Established employer partners include Arctic Slope Regional Corporation, Aleutian-Pribilof Islands Association, and Yukon-Kuskokwim Health Corporation.
· Create a model for innovation and flexibility in circumpolar graduate study that will attract international indigenous students and prominent national and international indigenous leaders and others as visiting scholars and affiliate faculty. Cultural dimensions will be maintained by recognizing traditional knowledge and involving indigenous elders. Rigorous academic standards will be maintained through a well-trained faculty and prominent guest speakers.

Meeting State Needs
· A great need exists for indigenous and other rural leaders who are skilled in managing corporations, governments, and organizations in a responsible, effective, and culturally appropriate manner. Expanded funding from the Denali Commission and other sources for rural projects only amplifies the need for skilled, community-based leadership capacity. Current "imported" employees tend to be transient, and have reduced effectiveness due to lack of familiarity with local customs, traditions, and practices.
· An ISER study prepared for the Alaska Federation of Natives indicated a lack of formal educational credentials, at both the baccalaureate and graduate level, is hampering Native peoples from securing upper-level and top management positions in many agencies, organizations, and corporations. Although job opportunities in rural Alaska are limited, areas where employment is predicted to increase include tourism, tribal compacting, health administration, and fish and wildlife management.
· Occupations for which graduates will be trained include: tribal administrators, program administrators, corporation managers, small business managers, health corporation managers, community planners, rural health and human services managers, and community development consultants.
· Alaska Department of Labor employment projections show an annual increase of 12.9 percent for jobs involving professional specialties and 9.3 percent for jobs involving executives and administrators (Alaska Occupational Outlook to 2005). Importantly, most students entering this MA program are expected to be already employed, but with the goal of improving their knowledge and skill to take positions of increasing responsibility, particularly where those positions are currently held by the more transient imported workers.

Students
An enrollment of 15 new students per year is expected. The minimum enrollment to maintain the program is eight FTE students per year, while the maximum enrollment the program can accommodate with current resources and anticipated tuition is 40 FTE. The program will accommodate full- and part-time students studying in Fairbanks or rural communities.

Enrollment projections are based on:
· A survey of Rural Development BA students, in which 61 percent (22) of those responding expressed interest in pursuing the master's degree.
· A survey of over 700 Native corporations, organizations, and local governments in which 91 percent (292) of those responding believed such a program should be established, and 69 percent (162) expressed a willingness to provide support for employees enrolling in the program.
· Letters from 30 individuals from throughout rural Alaska interested in enrolling in such a program.

Research/Service
The requirements of either a thesis or applied community development project will likely utilize expertise of research faculty and service-oriented entities such as the Sea Grant Program and the Alaska Cooperative Extension. Working with those students who already are community leaders will afford faculty enhanced opportunities for assisting with applied community development projects and programs in areas such as fisheries development, business administration, tourism development, and health care delivery.

Fiscal Impact
Faculty and Staff
· An 8-member core faculty from the Fairbanks and extended campuses (including Sitka) are in place to provide all courses through rescheduling of workloads and internal reallocation of resources within the College of Rural Alaska. Supplemental lectures will be provided by affiliate faculty drawn from other campuses and departments, state agencies, and circumpolar universities.
· Administrative, coordinative, and classified personnel are in place.
· The additional program costs, for a 1/2-time support position, program supplies, newsletter production, brochures, and travel and honoraria for guest speakers, are anticipated not to exceed $40,000 per year.
· The added cost would be met by tuition revenue of ~$45,000 from an enrollment of 15 students per year taking nine credits per semester at current graduate tuition rates.

Technology, Space, Specialized Facility, and Other Resources
· Library facilities and materials are adequate.
· No additional space is required.
· Distance delivery of courses will involve established systems for audioconferencing and the development of web-based courses, combined with face-to-face seminars. Additional external funding will be sought for national and international student mobility, development of cutting-edge Internet-based and televised courses, and other initiatives.

A description of the program is provided in Reference 3; the complete program proposal documentation will be available at the Board meeting.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve a Master of Arts in Rural Development at the University of Alaska Fairbanks, with the stipulation that the program be reviewed by the Board of Regents in five years for continuation. This motion is effective June 8, 2000."

D. Approval of an Accounting Technician Certificate Program at the University of Alaska Fairbanks Reference 4

The University of Alaska Fairbanks requests approval of an Accounting Technician certificate program, to be offered by the College of Rural Alaska. The program would prepare students for entry-level positions in accounting and bookkeeping. The certificate draws courses from the Associate of Applied Science in Applied Accounting. The certificate directly articulates with the AAS, for those students wishing to further an education in this field. The certificate provides a measure of achievement and the acquisition of basic skills for employment while studying for the AAS. The certificate can be implemented as soon as it is approved.

· Graduates will be qualified for positions in accounts payable, accounts receivable, payroll, tax, and general ledger bookkeeping for sole proprietorships, partnerships, corporations, and non-profits.
· The knowledge and skills needed by accounting clerks in Alaska were determined in collaboration with a number of employers across the state. The suitability of the resulting program design was verified through wide review by diverse Alaskan employers. UAF curriculum review verified the program meets academic standards.
· Existing faculty in the related associate degree program will ensure quality instructional delivery and will conduct outcomes assessments to ensure currency in the instructional program.
· While transfer of coursework between certificate programs is rare, articulation between the UAS and UAF accounting technician programs has been established.

Meeting State Needs
· The Alaska State Department of Labor Research and Analysis Division forecasts 1,726 new annual job openings in Alaska through 2006 for administrative support workers, most of which require some college education or previous experience.
· Entities that deal with money need accounting clerks. The certificate was designed to meet needs of Alaskan industries, organizations, and individuals for accounting and bookkeeping that would meet generally accepted accounting standards and other documentation or legal requirements.

Students
· The certificate is intended to serve as motivation and incentive to complete a program and continue college studies toward more advanced degrees (in addition to providing skills).
· 20 students are anticipated to enroll in the program the first year. Enrollment growth is expected to parallel that for the recently implemented certificate in applied business: in two years, a doubling in credit hour enrollment and quadrupling of graduates.

Research/Service - not applicable.

Fiscal Impact
· No additional funding needs are anticipated in implementing the certificate.

Faculty and Staff
· The program will use existing courses, faculty, and staff plus adjunct professors as need warrants.

Technology, Space, Specialized Facility, and Other Resources
· Current library collections, equipment, and facilities are adequate.

A description of the program is provided in Reference 4; the complete program proposal documentation will be available at the Board meeting.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approves an Accounting Technician Certificate program at the University of Alaska Fairbanks. This motion is effective June 8, 2000."

E. Approval of Deletion of the Master of Arts in Teaching Program in Geology at the University of Alaska Fairbanks

During the last 30 years, only two students have graduated from the Master of Arts in Teaching in Geology, in 1973 and 1989. Since then no students have been enrolled in the program. The program was recommended for deletion in the 1994 University-wide program assessment. With retirements and reallocation of resources, no resources are currently available for the program. Deletion will not result in the cancellation of courses or have any effect on other programs, since no courses are specific to the program. No phase-out period is needed and the program can be removed from the catalog upon approval for deletion.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve deletion of the Master of Arts in Teaching in Geology program at the University of Alaska Fairbanks. This motion is effective June 8, 2000."

F. Approval of the Reorganization of Schools and Colleges at the University of Alaska Fairbanks

The plan enacted in December 1994 by the Board of Regents as a result of the university-wide program assessment called for establishment of the College of Natural Resource Development and Management (CNRDM) at UAF. The college was to consist of the existing School of Agriculture and Land Resources Management (SALRM), School of Management (SOM), and School of Mineral Engineering (SME). Each school was to have a director, and the college was to be administered by a dean. Each director would administer the programs of the school; and the dean, envisioned as someone who had experience with private or government sector resource development issues, would internally coordinate programs and externally promote CNRDM as an instrument for Alaska's resource development.

CNRDM was established by UAF on July 1, 1997 in accordance with the initial part of the program assessment plan. The three schools retained their autonomies and administrators, now with the title of "director"; one of the directors (Dr. Fred Husby, Director of SALRM) was appointed as interim dean. Also in accordance with the 1994 plan, the college suffered a $775,000 decrement as it was formed. The next steps in the 1994 plan called for appropriate integration of CNRDM programs, a series of budget increments totaling $300,000, and, following an external search, appointment of a permanent dean. With the exception of some relatively minor collaboration among programs, none of these subsequent steps were undertaken. With no financial incentive and little perceived need for large-scale program integration, the faculty have - understandably - chosen to focus their efforts and limited resources on maintenance of existing important programs. With no incremental funding, CNRDM has not been able to afford a Dean, and Dr. Husby has served as interim dean since 1997 (all the while also serving as director of SALRM and maintaining research and teaching programs). While some aspects of payroll and personnel have been centralized, savings have been minimal since it has proved necessary to maintain some business functions within each school. The net result is that, after three years, the CNRDM structure has led to neither the administrative efficiencies nor programmatic changes anticipated by those who designed it.

UAF proposes to eliminate CNRDM and return the three schools to independent status for the following reasons:
· administrative structures will reflect the emphases of the programs, which they serve;
· professional accreditation questions about the administrative autonomies of SME and SOM will no longer even be raised;
· each school can have its own administration and business office at no additional cost;
· faculty who have begun collaborations can still continue them;
· morale of faculty, staff, and students will rise because they will have administrative structures which they deem to be appropriate;
· each director can concentrate administrative efforts on programs within the school rather than on "administrative coordination"; and
· reporting lines to the provost will be clarified.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve reorganization of the University of Alaska Fairbanks College of Natural Resource Development and Management to eliminate the College and provide for the independent status of its component units: the School of Agriculture and Land Resources Management, the School of Management, and the School of Mineral Engineering. This motion is effective June 8, 2000."

IV. New Business

A. Discussion Regarding a Request to Consider Providing Coed Rooms or Suites in University Housing

In response to an inquiry to the board regarding the provision of coed rooms in university housing, Linda Lazzell, Dean of Students at the University of Alaska Anchorage, will present factors to consider.

B. Discussion on Providing Special Consideration for Alaska High School Graduates Who Matriculated at the University of Alaska Prior to Institution of the University of Alaska Scholars Program

Regent Croft will lead a discussion on whether otherwise qualified Alaskan students who matriculated at the University of Alaska prior to initiation of the University of Alaska Scholars Program, and have since remained enrolled, might be allowed some other consideration for financial assistance.

"The Finance, Facilities, and Land Management Committee adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda

A. Project Approval for the University of Alaska Anchorage Library, Authorization to Bid and Award Contracts for the Parking Garage and Walkway, and Authorization to Proceed with the Design of the Library Renovation and Addition
B. Approval of Increased Total Project Costs for the University of Alaska Fairbanks Rasmuson Library Deferred Maintenance and Renovation Project
C. Project Approval for the University of Alaska Fairbanks Geist Road/Loftus Road Campus Entrance Project and Authorization to Proceed
D. Project Approval for Increased Funding of the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project
E. Acceptance of the FY2001 Capital and Supplemental Appropriations
F. Modification of Regents' Policy to Address Capital Planning Needs of the University
G. Modification of Regents' Policy to Address Approval of Capital Projects
H. Authorization to Proceed with Implementation of the Alaska Higher Education Savings Trust and Modification of the Advance College Tuition Program

IV. Ongoing Issues

A. Status Report on Construction in Progress and Other Projects

V. New Business
VI. Future Agenda Items

A. Report on Land Management Operations

VII. Adjourn

This motion is effective June 8, 2000."

III. Full Board Consent Agenda

A. Project Approval for the University of Alaska Anchorage Library, Authorization to Bid and Award Contracts for the Parking Garage and Walkway, and Authorization to Proceed with the Design of the Library Renovation and Addition Reference 6

BACKGROUND
At the August 1998 Board of Regents' meeting, project approval was given for the Library of the 21st Century on the UAA campus and included administrative authorization to expend up to $800,000 for the project program development and scoping. An agreement was executed with Cash Barner Architects for the initial planning, space programming, and concept development of the new library and parking structure. Initial planning and programming of space is now complete and the campus is ready to move forward with construction documents for the parking structure and the enclosed walkway.

SCOPE OF WORK
Phase I of the construction project will build the new 300+ vehicle parking structure and an inner connecting enclosed walkway between the existing Science Building and the College of Arts and Sciences (CAS). Building the parking structure first will avoid having to close more than one of the existing parking lots at a time and will be far less disruptive to students, faculty, and staff. In addition to construction of the parking structure and enclosed walkway, the administration will initiate schematic design for the renovation and remodel to the existing library and the new three-story 109,000 square foot library addition.

FUNDING
Phase I of the project will be funded through the FY98 capital appropriation for $9,530,000. Reference 6 includes a project and operating cost summary indicating that total project costs for the project will be $43,980,000.

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents approve the UAA Library Project at a total project cost not to exceed $43,980,000 and authorize the administration to bid and award contracts for the construction of the parking garage and enclosed walkway at a total project cost not to exceed $9,268,000 and to expend up to $600,000 for the schematic design of the library renovation and addition. This motion is effective June 8, 2000."

B. Approval of Increased Total Project Costs for the University of Alaska Fairbanks Rasmuson Library Deferred Maintenance and Renovation Project Reference 7

PROJECT DESCRIPTION
The UAF Rasmuson Library Deferred Maintenance project received project approval from the Board of Regents on November 20, 1998 at a total project cost not to exceed $11,801,400.

The investigation/scope definition phase of the project resulted in cost estimates for all the needed repairs in the library. The total project costs identified for deferred maintenance work totaled approximately $18.2 million and another $2 million for work items such as the upgrade of the data communication system. Prioritization of the work items was initiated to reduce the scope of work to meet the available budget. This, however, led to critical work being deleted that is essential to the future of the library operations. The project planning team is now recommending a project at approximately $18 million to complete essential work.

The Rasmuson Library is a critical building for the mission of the university. With the exception of a roof replacement in the early 1990s, there has not been any major work done on this facility in the last 30 years. This project will be implemented by working through the building floor-by-floor, allowing the library to remain in use for the duration of construction. The disruption caused by this project is one that should not be repeated again in the near future.

The additional authorization would accomplish the following:
· Additional finishes replacement (carpet, wall, and ceilings).
· Replace the air distribution system and add direct digital controls (DDC) in the library addition.
· Upgrade and extend the data communications system with associated electrical outlets.
· Replace lighting and attenuate noise in the broadcast studio.
· Replace furniture in public areas.
· Renovate and install some new compact shelving for the Alaska and Polar Regions collection.
· Reseal plaza membrane and roof flashing.
· Upgrade exterior lighting, improve south entry, and correct plaza settlement.

The original scope of work replaced the oldest sections of the heating system but did not fully address the air handling problems of the building. The expanded scope will provide a fully coordinated heating and ventilating system. Not all finishes could be addressed in the original project budget. The additional funding will address all of the deteriorated 1970s finishes in the building. The revised scope will fully upgrade the data communications system to the campus standard.

FUNDING
In October 2000, when the project is brought to the committee for schematic design approval and authorization to bid and award, the administration will also bring a funding plan that is commensurate with the then current estimate of total project costs. The funding plan proposed at that time may exclude project components currently considered critical.

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents approve an increase in the authorized total project cost for the Rasmuson Library Deferred Maintenance and Renovation Project to a total project cost not to exceed $18 million. This approval is subject to approval of schematic design and a funding plan for the project. This motion is effective June 8, 2000."

INTRODUCTION
The State of Alaska Department of Transportation and Public Facilities (DOTPF) propose to design and construct a new entrance road including a railroad overpass onto the UAF campus. The new road will begin at the intersection of Geist Road and Loftus Road, and proceed in a northerly direction to the intersection of Tanana Loop and West Tanana Loop.

PROJECT DESCRIPTION
UAF's existing Fairbanks Street entrance has long been inadequate due to excessive grades associated with the railroad overpass, with traffic congestion compounding the problems. The new access road will ultimately replace this entrance by moving the railroad overpass down to Loftus Road. This will allow Fairbanks Street to be closed just north of the West Valley High School entrance. On the UAF side of the railroad, Fairbanks Street will be converted to pedestrian-only traffic. A future DOTPF project will ultimately completely remove the Fairbanks Street railroad overpass and replace it with a pedestrian overpass. Until such time as the bridge is replaced, an exit-only, emergency-vehicles traffic lane will be provided to allow UAF's emergency vehicles to serve the University Fire District expediently.

The proposed Loftus Road entrance to UAF will be two lanes with 8-foot shoulders on each side. In addition, there will be a 10-foot wide pedestrian walkway along the east side, separated by a curb. A new sidewalk will be constructed along the north edge of Tanana Loop and ultimately connect to the existing sidewalk in front of the Patty Center. The proposed Loftus Road entrance will cross the Alaska Railroad on an elevated crossing.

The existing 3-leg intersection at Geist Road and Loftus Road will be converted to a signalized 4-leg intersection. At the north end closest to UAF, a roundabout style intersection will tie the new extension of Loftus Road into Tanana Loop and West Tanana Loop.

DOTPF staff has worked closely with university staff, Master Planning Committee, Facilities Management Team, and Ruth Hewitt Landscape Committee to develop a plan that will serve as the main entrance to the Fairbanks campus. Input from these entities has led to features such as illumination, information kiosk, landscaping, and signage all being incorporated into the project.

On June 19, 1997, the University of Alaska Board of Regents passed a motion approving the concept of relocating the Fairbanks Street entrance to Loftus Road. The Fairbanks North Star Borough Assembly (FNSB) passed a resolution, "Supporting the Relocation of the University of Alaska Fairbanks Geist Road Access West to Loftus Road" in June of 1997. Alaska Statues require the FNSB to grant local planning authority for the location and design of the project. This approval was granted in April of 2000.

FUNDING
The DOTPF will fully fund the design and construction of this project. The university will provide the necessary right-of-way at no cost to the state but will maintain ownership of the property. In addition, the university will provide maintenance for the new road and railroad overpass.

SCHEDULE
DOTPF indicates that this project is currently in the 2003 Statewide Transportation Implementation Plan (STIP), however they are seeking advanced construction funding. DOTPF anticipates having an advertising package ready for this project by April 2001. Construction is expected to take two to three years. Therefore, the project is expected to be complete no later than September 2004.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents grant project approval for the University of Alaska Fairbanks Geist Road/Loftus Road Campus Entrance Project and authorize the administration to take such actions necessary to facilitate completion of the project by the State of Alaska Department of Transportation and Public Facilities, including issuance of required construction permits. This motion is effective June 8, 2000."

D. Project Approval for Increased Funding of the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project Reference 9

PROJECT DESCRIPTION
On August 21, 1998, the Board of Regents authorized the expenditure of up to $1,600,000 for planning and design of the University of Alaska Fairbanks/Fairbanks North Star Borough (FNSB) Hutchison Career Center Renovation and Addition Project.

The FY99 $1.6 million capital appropriation is being expended for the joint planning and design of the project. The original allocation of the appropriation between UAF ($600,000) and the FNSB ($1,000,000) was based on a total project cost of $16 million. The total combined project cost is currently estimated at $23.6 million. The university also received capital appropriations of $3 million in FY00 and $5 million in FY01. The university's commitment to this project is now fully funded at $9.6 million. The Fairbanks North Star Borough anticipates selling bonds to fund their $14 million portion of this project.

The university's portion of this project includes deferred maintenance and code upgrades to UAF's existing space, renovation of 8,500 square feet for culinary arts, second floor aviation classroom, administrative offices, and over 13,000 net square feet of new construction for an automotive shop, multi-function shop, and an electronics classroom. The Fairbanks North Star Borough's scope of work includes deferred maintenance, code upgrades, extensive renovation to their 55,000 square feet of existing space, and over 12,000 net square feet of new construction for classrooms, library, and gymnasium expansion.

A memorandum of agreement between the university and the Fairbanks North Star Borough and an agreement that establishes the payment for construction costs and dedication of and payment for space within the Hutchison Career Center were signed in March of 2000. Amendment #2 to the lease agreement for the Hutchison Career Center parcel was executed in April of 2000, and an agreement addressing operations and maintenance issues will be completed in the next few weeks.

CONSULTANT
USKH, Inc. of Fairbanks, Alaska is the design consultant for this combined project.

A budget for the university's $8.6 million portion of the project is included in Reference 9.

SCHEDULE
Original project approval - August 21, 1998
Schematic approval - October 5, 2000
*Bid - May 2001
*Construction complete - December 2002*Schedule item based on the Fairbanks North Star Borough fully funding their portion of the project in the fall of 2000.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents approve the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project as presented, at a total project cost for the university's commitment to the project not to exceed $9.6 million. This motion is effective June 8, 2000."

The university administration will present a summary of the FY 2001 capital and supplemental appropriations to the university. The summary will be hand carried to the meeting. As of this writing, the governor has not signed the appropriations into law.

Pat Pitney, director of Budget Development and Institutional Research, Jim Lynch, interim vice president for Finance, and Wendy Redman, vice president for University Relations, will be available to discuss the legislative appropriations and any related issues.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommend that the Board of Regents accept the FY2001 capital and supplemental appropriations as presented. This motion is effective June 8, 2000."

F. Modification of Regents' Policy to Address Capital Planning Needs of the University Reference 11

Following the discussion during the April 2000 Finance, Facilities, and Land Management Committee, Interim Vice President Lynch, Assistant Vice President for Finance Dickinson, and Budget Director Pitney met with the campus construction professionals to discuss capital planning needs and alternative methods to secure funding to accomplish those needs.

As of this writing, the facilities groups are continuing to work on determining their needs and will meet again later this week to discuss funding proposals. Although the amounts and percentages have not been determined, preliminary discussions of the group indicate that the funding proposal will include an authorization to spend M&R funds up to some specified level and authorization to include a capital-planning surcharge in the administrative overhead rate currently charged to capital projects.

The proposed policy revision also provides for expanding the authorized use of M&R funds to capital planning, alterations, and R&R to be consistent with current practices and the proposed funding plan.

Jim Lynch, interim vice president for finance, will discuss with the committee the recommendations of the facilities managers.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommend that the Board of Regents adopt the modifications to Regents' Policy 05.12.01 as presented in Reference 11 and as may be amended by the Finance, Facilities, and Land Management Committee, and authorize the vice president for finance to increase previously approved project cost authorizations as may be required to implement this revision to regents' policy. This motion is effective June 8, 2000."

In recognition of the revision to the meeting schedule of the Board of Regents and in response to the additional capital planning activities directed by the Board of Regents, the administration proposes to modify the procedures for approving capital projects, schematic designs associated with those projects, and deferred maintenance expenditure plans.

The proposal increases the authority of the vice president for finance to approve projects up to $500,000, for the chair of the FF&LM Committee to approve projects up to $1 million, and for the FF&LM Committee to approve projects up to $2.5 million. For projects in excess of $2.5 million, the proposal provides for the FF&LM Committee approval after giving reasonable notice to other board members that the project will be considered. If multiple projects are aggregated, it authorizes the vice president for finance to determine the appropriate level of approval required based on the amount and nature of the request. The proposal provides for an increase above the standing authorization to spend up to $50,000 for planning, scoping, and preliminary design of a project to $150,000 subject to approval of the university's chief financial officer. The proposal also provides a description of some of the information that should be included with a request for project approval.

Jim Lynch, interim vice president for finance, will discuss the proposed changes with the committee.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents adopt the modification to Regents' Policy 05.12.04 as set forth in Reference 12. This motion is effective June 8, 2000."

H. Authorization to Proceed with Implementation of the Alaska Higher Education Savings Trust and Modification of the Advance College Tuition Program

The legislation that established the Alaska Higher Education Savings Trust (EST), SB 186, was signed into law on March 15, 2000. Early in this year's session, Senator Tim Kelly and Representative Lisa Murkowski sponsored companion legislation to create the program. Anchorage attorney, Mr. Robert Manley, from Hughes Thorsness, et al, was also instrumental in drafting and supporting the legislation. The bill created the Education Savings Trust within the university and amended the current Advance College Tuition (ACT) statutes to allow the university to modernize the ACT program and facilitate common administration of two separate but integrated college savings plans.

As background, Section 529 of the Internal Revenue Code was signed into law in August 1996. Section 529 provides for a unique set of tax benefits for participants of state prepaid tuition and college savings programs, if the programs meet certain criteria. Prepaid tuition programs function similar to defined benefit pension plans and provide a fixed benefit (tuition at some future date) to a beneficiary regardless of the price paid or earnings of the fund. College savings programs function similar to defined contribution (mutual fund-type) pension plans and provide for the allocation of earnings and losses of the fund based on account balances, with no guarantee by the provider of future account value or earnings.

Section 529 offers participants in such programs significant gift/estate tax and income tax benefits. For example, it allows a parent or other benefactor to set aside and invest up to $50,000 in one year on behalf of a specified beneficiary ($100,000 for a married couple). The gift is not only subject to the $10,000 annual gift tax exclusion; the annual gift tax exclusion for the next four years may also be applied to the gift. Income tax on the investment earnings of the fund or account is deferred until the funds are withdrawn from the account. Distributions for qualified education expenses are taxed to the beneficiary at the beneficiary's tax rate. If the funds in the account are withdrawn for purposes other than qualified expenses, distributions are generally subject to a 10 percent (10%) earnings penalty. The penalty will be retained by the university. The purchaser or named contributor to the account can change the beneficiary or take the money back at any time without the consent of the beneficiary. Unlike most other tax deferred savings vehicles, there are no income limitations on participants or beneficiaries.

The ACT fund was established in 1990 as a nonlapsing fund of the University of Alaska for the purpose of creating a prepaid tuition program. Since 1996, ACT has functioned as a hybrid prepaid tuition/college savings program and is operated as a "qualified state tuition program" under Section 529 of the Internal Revenue Code. ACT allows participants to purchase units of tuition at current University of Alaska rates for the benefit of a future student to attend the University of Alaska. Earnings are credited to participants' accounts on an annual basis at an indexed money market rate. Participants who choose to attend an eligible school outside of the UA system are allowed to withdraw the full monetary value of their account, including all earnings, to pay for tuition, fees, and books at the other institution. Distributions for other than qualified education expenses are subject to significant penalties.

ACT has approximately 11,000 contracts for the benefit of 8,560 future college students. The current fund liability is $21.4 million. The university administers the program in-house except for investment of the fund, which is done by the Treasury Division of the Alaska Department of Revenue. The total value of the fund was approximately $28.2 million at April 30, 2000.

Participation in the ACT program is essentially limited to Alaskan residents with the majority of deposits coming from automatic payments through the Alaska Permanent Fund Dividend (PFD) Program. Each year Alaskan residents can choose to automatically deposit one-half of their upcoming PFD dividends into the ACT program. Last year's contributions through the PFD totaled $3.6 million.

Qualified distributions from the ACT program are approximately $1.5 million annually and are restricted to payments for tuition, fees, books, and supplies required for admission. Two-thirds of all qualified distributions are paid to the University of Alaska while one-third is made payable to other colleges, universities, and vocational schools nationwide.

The Alaska Higher Education Savings Trust (EST) attempts to combine the benefits of Section 529 with the creditor protection provisions of Alaska's trust laws to create a unique and attractive vehicle for financing a college or vocational education. EST will be integrated with a modified version of the ACT program. ACT will be a more informal program tailored to saving for tuition at the University of Alaska, and the EST will be a more formal "trust" tailored to saving for a broader scope of higher education expenses, including attendance at other institutions and the payment of room and board in addition to other qualified higher education expenses. Participation in the ACT program will essentially continue to be limited to Alaska residents and the EST program will be available to Alaskans and non-Alaskans alike. ACT will have contribution limits of approximately $20,000 and EST contribution limits will be in the neighborhood of $100,000 to $125,000. ACT will offer one or two conservative investment options while EST will offer more aggressive mutual fund-type offerings.

The intent of the legislature and the original sponsors of the legislation were to provide a unique college savings program that would attract out-of-state participants to the program, thereby increasing the critical mass and lowering the per unit cost of administration required for Alaskan participants. The university administration hopes to partner with a provider to offer the program nationally and to have the new program operational by December 1, 2000. We are currently assembling a team of professionals to assist in development of an implementation plan and selection of a turn-key (marketing, record keeping, and investment service) provider, and to advise the university on plan provisions and related matters.

Jim Lynch, interim vice president for finance, will update the committee on the plan for implementation of the programs and an overview of how the two programs might be coordinated. Mr. Lynch will seek input from the FF&LM Committee on board involvement in the implementation process and request authorization to proceed with the selection of the third party provider and implementation or re-implantation of the programs.

The President recommends that:

MOTION

"The Finance, Facilities, and Land Management Committee recommends that the Board of Regents authorize the administration to implement the Alaska Higher Education Savings Trust and modify the Advance College Tuition program to form an integrated college savings program consistent with the requirements and provisions of AS 14.40.802-14.40.817 and Section 529 of the Internal Revenue Code. This motion is effective June 8, 2000."

IV. Ongoing Issues

A. Status Report on Construction in Progress and Other Projects Reference 13

A status report for construction and other projects, including the Lena Point Facility and the Coal-Water Fuel Project, approved by the Board of Regents and in progress is included in Reference 13. Jim Lynch, interim vice president for Finance, and representatives from each MAU will be available to address any questions of the committee.

The Human Resources Committee reviewed and made minor edits to a draft of Regents' Policy 04.09 - Nondisciplinary Terminations and Financial Exigency, at the April 2000 Board meeting. Staff Governance groups had an opportunity to review the revisions proposed in April. A copy of the final version is included in Reference 14.

The President recommends that:

MOTION

"The Human Resources Committee recommends that the Board of Regents approve revisions to Regents' Policy 04.09 - Nondisciplinary Terminations and Financial Exigency. This motion is effective June 8, 2000."

The Human Resources Committee informally reviewed Regents' Policy 04.03 - Recruitment and Staffing, at the April 2000 meeting and directed a deletion of the second paragraph under "Screening and Selection Process" since this paragraph contains operational detail rather than policy statements. With one additional minor edit, this revised policy is included as Reference 15. Staff Governance had an opportunity to review the revisions. Because the changes are minor and Board directed, a single reading is recommended.

The President recommends that:

MOTION

"The Human Resources Committee recommends that the Board of Regents approve revisions to Regents' Policy 04.03 - Recruitment and Staffing. This motion is effective June 8, 2000."

IV. Human Resources Issues Update

Reference 16

The Human Resources issues update will include compensation and benefits issues for non-union staff and executives. Material related to these issues appears as Reference 16.

Ben Shilling, Internal Audit director, will review with the Audit Committee recently completed audits and answer any questions members of the committee may have. This is an information item; no action is necessary.

B. Audit Status Report

Strike through items - have been removed from the plan.Italic items - have been completed or are in progress.

University of Alaska Southeast:Student Housing
Business Office
Sitka Campus Business Office Review

EDP Reviews:
Security Program Change Control

Function and System Reviews:
Banking Activities
Travel

Internal Audit Reports & Activities

Final Reports Issued:

UAF College of Natural Resource Development and Management
The dean of the CNRDM and the business office staff are working with problems resulting from a newly organized college, staff turnover, and limited staffing levels, all which limit their ability to satisfy the needs of the three schools within the CNRDM. The most significant of our identified concerns included:
· The handling of cash receipts in a manner that will discourage misappropriation.
· The processing of travel documents to ensure accurate reimbursements are made to travelers and the business purpose of travel is well documented.
· That appropriate ethics disclosures are completed in a timely and accurate fashion to promote a prompt and thorough review of the situation.

UAF Northwest Campus
Our tests and observations performed during this review indicate that the business office was functioning well. However, management attention was needed in cash receipts, accounts receivable, and property management. In addition, we noted a concern with unused and potentially hazardous buildings located on the NWC site that should be remedied.

UAS Physical Plant
The new facilities management system has been in service for over a year. Original development and refinement efforts concentrated on meeting the internal needs of the department. Attention needs to be given to the refinement of data needed by executive management and to improving the efficiency of some processes. Areas needing attention were implementation of database reporting software, refinement of cost categories, inclusion of planning and construction in the facilities management system, and development of an automated payroll interface.

Work in Progress:
Legislative Audit is currently working on a review of the Wyoming, Alaska, Montana, and Idaho (WAMI) Regional Medical Education Program. This review is focused mainly on the University of Washington (UW) to determine the use of the funds that are paid to UW on behalf of Alaskan students participating in the WAMI program.

Federal Audit Reports & Activities

Work in Progress:
The Defense Contract Audit Agency (DCAA) performed an on-site review during the week of May 8, 2000. Their work covered four areas including: employee time reporting, existence of purchased items, FY1999 staff benefit costs, FY2001 staff benefit projections.

External Audit Reports & Activities

Work in Progress:
Fieldwork for UAA's NCAA compliance report is complete and the report is being finalized.
This is an information item; no action is necessary.

C. Review of Committee Reporting and Audit Ratings

Ben Shilling, Internal Audit director, will present information to the committee regarding the current level of reporting to the committee and a proposal for future reporting. The presentation will also include a discussion on the use of Audit Ratings as part of the audit process. This is an information item; no action is necessary.

IV. New Business

A. Approval of the FY2001 Annual Audit Plan Reference 17

Ben Shilling, director of Internal Audit, will present to the Audit Committee for approval the annual audit plan for FY2001, which is included as Reference 17. Regents' Policy 05.03.01.D - Internal Audit reporting states:

The director of internal audit, in conjunction with the regents' external auditors, shall annually present a complete audit plan for the university to the Board of Regents' Audit Committee for review and approval.

The Internal Audit Department's annual audit plan includes providing agreed-upon audit support to the university's independent auditors, KPMG Peat Marwick. Other external audit coverage will also be discussed with the committee, including expected federal and state audit activity.

The President recommends that:

MOTION

"The Board of Regents' Audit Committee approves the annual audit plan for fiscal year 2001 as presented. This motion is effective June 9, 2000."

B. Review of Internal Audit Policies and Procedures

Ben Shilling, Internal Audit director, will present information to the committee regarding the recently completed Internal Audit Policies and Procedures Manual. This is an information item; no action is necessary.

C. Review of MAU Handling of Overspent Budgets

Ben Shilling, Internal Audit director, will present information to the committee regarding the handling of departments who overspend their budgets. The information will be presented on an MAU basis. This is an information item; no action is necessary.

D. Review of Committee Meeting Schedule

Ben Shilling, Internal Audit director, will discuss with the committee a revised meeting schedule given the recent changes to the full board meeting schedule. This is an information item; no action is necessary.

E. Selection of External Auditors

Ben Shilling, Internal Audit director, will discuss with the committee the process for selecting an audit firm for the 5-year period FY2001 through FY2005. This is an information item; no action is necessary.

F. Executive Session

MOTION

"The Audit Committee of the Board of Regents goes into executive session at ____ A.D.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to litigation and matters that would affect the reputation or character of a person or persons. The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, Vice President Lynch, Internal Audit Director Shilling, and such other university staff members as the president may designate and will last approximately __ hour(s). Thus, the open session of the Audit Committee of the Board of Regents will resume in this room at approximately ___ A.D.T. This motion is effective June 9, 2000."

(To be announced at conclusion of executive session)

The Audit Committee of the Board of Regents concluded an executive session at _____ A.D.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university; and matters that would affect the reputation or character of a person or persons. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, Vice President Lynch, Internal Audit Director Shilling, and other university staff members designated by the president and lasted approximately ______ hour(s).

At the April 2000 Planning and Development Committee meeting, members reviewed draft mission statements and the current mission statement for the University of Alaska and agreed to review the mission statement submitted by Regent Dan Ogg as a starting point for a revised University of Alaska Mission Statement. Members were asked to review the statement and its accompanying statements:

"The mission of the University of Alaska is to provide the highest quality postsecondary education to all qualified Alaskans, thus ensuring them the best opportunity to become successful, productive, and contributing members of Alaskan society and future.

The University of Alaska will accomplish its mission in the following manner:

--By advancing and extending knowledge, learning and culture throughout Alaska;
--By preparing significant numbers of educated and responsible people with values to contribute to Alaska's future;
--By offering excellent programs leading to certificates, associate, baccalaureate, master, and doctoral degrees;
--By providing public service that enriches Alaska and its communities;
--By ensuring stable funding to accomplish its mission; and
--By being accountable for its mission to its students, faculty, and the citizens of Alaska."

B. Review of University of Alaska Vision Statements

The committee will review the vision statements crafted during its November 1999 retreat. The summary statements for each topic area are included below.

--Planning: The University of Alaska has a planning process that is growing, alive, responsible, cultivated, meets the needs of the state, and is a vital part of what we are.

--Curriculum: The University of Alaska will ensure that the community college mission is as invigorated as we want it to be; and that the needs of the state and its citizens are being met by our programs.

--Technology/Facilities: The University of Alaska is on the forefront of distance delivery; and we are taking care of maintenance, repair, and technology needs.

--Faculty: The University of Alaska has high level, developed, nourished, enriched, satisfied faculty.

--Funding: The University of Alaska is doing all it can to provide funding from various sources; we are selling our relevancy to the citizens of this state.

--Students: The University of Alaska is an institution of choice for our citizens; we have the highest and most responsive course offerings, access, and diversity.

--Relationship to Constituencies: The University of Alaska will define its role more broadly to maintain relationships with constituencies and ensure the intellectual future of the institution.

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda
A. Approval of Motion to Table Consideration of Tuition Rate Adjustments
B. Approval of FY2001 Student Government Budgets
C. Approval of the Distribution Plan for the FY 2001 Operating Budget
IV. Presentation on the Air Force ROTC Program at the University of Alaska Anchorage
V. New Business
VI. Future Agenda Items
VII. Adjourn

At the February 18, 2000 Board of Regents' meeting, the board officially tabled until June 2000 a motion to adjust tuition rates for the tuition year (TY) beginning the summer 2001 through spring 2002. The administration had recommended that inflation-adjusted tuition rates be approved at the February 2000 meeting in order to allow students and their families to better plan in advance for the cost of attendance. President Hamilton also indicated that he and the chancellors are committed to a review of student fees but expected that review would take six months or longer to complete. The student leadership indicated that the students were opposed to adoption of the administration's proposed inflation-adjusted tuition rates and were uncertain about the extent or impact of the proposed review of student fees.

President Hamilton has asked the Systemwide Academic Council (SAC) to take a leadership role in the review of student fees and the development of recommendations for policies and procedures that will provide for ongoing review and approval processes for creation and maintenance of such fees, including criteria for establishing and setting fees. No substantive reports or recommendations on fees are expected until the students return to school in the fall. In the interim, the administration will continue development of revised tuition and fee policies for adoption next year.

The administration intends to bring a draft policy and recommendation on tuition rates to the board for discussion at the October 2000 meeting. In order to meet publication deadlines for campus catalogs, a decision on tuition rates for TY2002 must be finalized at the November 2000 board meeting.

The President recommends that:

MOTION

"The Committee of the Whole recommends that the Board of Regents table further consideration of tuition rate adjustments until the October 2000 meeting of the board. This motion is effective June 9, 2000."

B. Approval of FY2001 Student Government Budgets

Regents' Policy P09.07.05 requires student government organizations to submit annual budgets to the Board of Regents for approval.

In conjunction with the approval of the student government budgets, any changes in student government activity fees will be approved by the board. The activity fees proposed at all of the campuses are the same as last year except for a proposed increase in the activity fee for Ketchikan students from $1 per credit hour to $3 per credit hour. Due to the relative size of the increase and reported limited student participation in the fee setting process, Interim Vice President Lynch recommends a suspension of the fee increase until the Ketchikan student body has an opportunity to reaffirm its approval.

As of this writing, student government budgets are not ready for presentation to the board. Because the Board of Regents is not scheduled to meet until October 2000, the administration recommends that the vice president for finance be authorized to revise and approve the FY2001 student government budgets.

The President recommends that:

MOTION

"The Committee of the Whole recommends that the Board of Regents authorize the vice president for finance to review, modify, and approve the student government budgets for FY2001, and to suspend implementation of the activity fee increase proposed for the Ketchikan Campus until the recommendation is approved by the Ketchikan student body. This motion is effective June 9, 2000."

Reference 18 contains a summary of the FY01 operating budget approved by the legislature and a summary of changes in appropriations from the FY00 operating budget to the FY01 operating budget. The administration will present a summary of the operating budget appropriations to the university and a proposed distribution plan for the state general fund appropriations. Due to the timing of this writing, the distribution plan of state general fund increments to campuses and the system office will be hand carried to the meeting. Any legislative intent language and related legislation will also be discussed.

Pat Pitney, director of Budget Development and Institutional Research, Jim Lynch, interim vice president for Finance, and Wendy Redman, vice president for University Relations, will be available to discuss the legislative appropriations and a proposed distribution plan.

The President recommends that:

MOTION

"The Committee of the Whole recommends that the Board of Regents approve the distribution plan for the FY01 state general fund operating budget appropriation as presented. This motion is effective June 9, 2000."

IV. Ongoing Issues

A. Status Report on New Air Force Reserve Officer Training Corp Program Under Development at the University of Alaska Anchorage

Provost Dan Johnson will review plans and provide an overview for the Air Force Reserve Officer Training Corp (AFROTC) program currently under development at UAA in conjunction with UAA faculty and military personnel.

V. New Business

VI. Future Agenda Items

VII. Adjourn

Agenda
Board of Regents Meeting of the Full Board
Thursday-Friday, June 8-9, 2000
UAA Commons, University of Alaska Anchorage
Anchorage, Alaska

1. Approval of a Center for Community-based Service, Learning, and Research for the University of Alaska Anchorage
2. Approval of a Master of Science Degree Program in Global Supply Chain Management at the University of Alaska Anchorage
3. Approval of a Master of Arts Degree Program in Rural Development at the University of Alaska Fairbanks
4. Approval of an Accounting Technician Certificate Program at the University of Alaska Fairbanks
5. Approval of the Deletion of the Master of Arts in Teaching Program in Geology at the University of Alaska Fairbanks
6. Approval of the Reorganization of Schools and Colleges at the University of Alaska Fairbanks

B. Finance, Facilities, and Land Management Committee

1. Project Approval for the University of Alaska Anchorage Library, Authorization to Bid and Award Contracts for the Parking Garage and Walkway, and Authorization to Proceed with the Design of the Library Renovation and Addition
2. Approval of Increased Total Project Costs for the University of Alaska Fairbanks Rasmuson Library Deferred Maintenance and Renovation Project
3. Project Approval for the University of Alaska Fairbanks Geist Road/Loftus Road Campus Entrance Project and Authorization to Proceed
4. Project Approval for Increased Funding of the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project
5. Acceptance of the FY2001 Capital and Supplemental Appropriations
6. Modification of Regents' Policy to Address Capital Planning Needs of the University
7. Modification of Regents' Policy to Address Approval of Capital Projects
8. Authorization to Proceed with Implementation of the Alaska Higher Education Savings Trust and Modification of the Advance College Tuition Program

Awards include round trip tickets for two to anywhere Alaska Airlines flies and $1,000.

VI. Election of Board of Regents' Officers

In accordance with Regents' Policy 01.01.01, Article III, Section 2, at the annual meeting of the Board of Regents, the officers of the board shall be elected by a simple majority vote.

At the June 8-9, 2000 annual meeting in Fairbanks, a slate of nominees will be presented by the Nominating Committee, nominations may be made from the floor, and an election will be held for board officers. Elections will be held by secret ballot.

MOTION

"The Board of Regents elects as chair of the Board of Regents: ________________________________. This motion is effective June 8, 2000."

MOTION

"The Board of Regents elects as vice chair of the Board of Regents: ________________________________. This motion is effective June 8, 2000."

MOTION

"The Board of Regents elects as secretary of the Board of Regents: ________________________________. This motion is effective June 8, 2000."

MOTION

"The Board of Regents elects as treasurer of the Board of Regents: ________________________________. This motion is effective June 8, 2000."

VII. Public Testimony [Scheduled for 10:00 a.m.]

Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Hamilton by the Board of Regents' Officer following the meeting.

FRIDAY, JUNE 9, 2000

VIII. Consent Agenda[Will begin following committee meetings]

MOTION

"The Board of Regents approves the recommendations of its standing committees as stated below. This motion is effective June 9, 2000."

A. Academic and Student Affairs Committee

1. Approval of a Center for Community-based Service, Learning, and Research for the University of Alaska Anchorage Reference 1

MOTION

"The Board of Regents approves formation of the Center for Community-based Service, Learning, and Research at the University of Alaska Anchorage, with the stipulation that it be reviewed by the Board of Regents in five years for continuation. This motion is effective June 9, 2000."

2. Approval of a Master of Science Degree Program in Global Supply Chain Management at the University of Alaska Anchorage Reference 2

MOTION

"The Board of Regents:
· approves a Master of Science Degree Program in Global Supply Chain Management for the University of Alaska Anchorage, with the stipulation that the program be reviewed by the Board of Regents in five years for continuation, and
· approves charging three times the established graduate tuition rate for the charter cohort of students and, subject to approval of the chancellor and the president, four times the established tuition rate for subsequent cohorts.
This motion is effective June 9, 2000."

3. Approval of a Master of Arts Degree Program in Rural Development at the University of Alaska Fairbanks Reference 3

MOTION

"The Board of Regents approves a Master of Arts in Rural Development at the University of Alaska Fairbanks, with the stipulation that the program be reviewed by the Board of Regents in five years for continuation. This motion is effective June 9, 2000."

4. Approval of an Accounting Technician Certificate Program at the University of Alaska Fairbanks Reference 4

MOTION

"The Board of Regents approves an Accounting Technician Certificate program at the University of Alaska Fairbanks. This motion is effective June 9, 2000."

5. Approval of the Deletion of the Master of Arts in Teaching Program in Geology at the University of Alaska Fairbanks

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approves deletion of the Master of Arts in Teaching in Geology program at the University of Alaska Fairbanks. This motion is effective June 9, 2000."

6. Approval of the Reorganization of Schools and Colleges at the University of Alaska Fairbanks

MOTION

"The Board of Regents approves reorganization of the University of Alaska Fairbanks College of Natural Resource Development and Management to eliminate the College and provide for the independent status of its component units: the School of Agriculture and Land Resources Management, the School of Management, and the School of Mineral Engineering. This motion is effective June 9, 2000."

B. Finance, Facilities, and Land Management Committee

1. Project Approval for the University of Alaska Anchorage Library, Authorization to Bid and Award Contracts for the Parking Garage and Walkway, and Authorization to Proceed with the Design of the Library Renovation and Addition Reference 6

MOTION

"The Board of Regents approves the UAA Library Project at a total project cost not to exceed $43,980,000 and authorizes the administration to bid and award contracts for the construction of the parking garage and enclosed walkway at a total project cost not to exceed $9,268,000 and to expend up to $600,000 for the schematic design of the library renovation and addition. This motion is effective June 9, 2000."

2. Approval of Increased Total Project Costs for the University of Alaska Fairbanks Rasmuson Library Deferred Maintenance and Renovation Project Reference 7

MOTION

"The Board of Regents approves an increase in the authorized total project cost for the Rasmuson Library Deferred Maintenance and Renovation Project to a total project cost not to exceed $18 million. This approval is subject to approval of schematic design and a funding plan for the project. This motion is effective June 9, 2000."

"The Board of Regents grants project approval for the University of Alaska Fairbanks Geist Road/Loftus Road Campus Entrance Project and authorizes the administration to take such actions necessary to facilitate completion of the project by the State of Alaska Department of Transportation and Public Facilities, including issuance of required construction permits. This motion is effective June 9, 2000."

4. Project Approval for Increased Funding of the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project Reference 9

MOTION

"The Board of Regents approves the University of Alaska Fairbanks/Fairbanks North Star Borough Hutchison Career Center Renovation and Addition Project as presented, at a total project cost for the university's commitment to the project not to exceed $9.6 million. This motion is effective June 9, 2000."

"The Board of Regents adopts the modifications to Regents' Policy 05.12.01 as presented in Reference 11 and as may be amended by the Finance, Facilities, and Land Management Committee, and authorize the vice president for finance to increase previously approved project cost authorizations as may be required to implement this revision to regents' policy. This motion is effective June 9, 2000."

"The Board of Regents adopts the modification to Regents' Policy 05.12.04 as set forth in Reference 12. This motion is effective June 9, 2000."

8. Authorization to Proceed with Implementation of the Alaska Higher Education Savings Trust and Modification of the Advance College Tuition Program

MOTION

"The Board of Regents authorizes the administration to implement the Alaska Higher Education Savings Trust and modify the Advance College Tuition program to form an integrated college savings program consistent with the requirements and provisions of AS 14.40.802-14.40.817 and Section 529 of the Internal Revenue Code. This motion is effective June 9, 2000."

"The Board of Regents tables further consideration of tuition rate adjustments until the October 2000 meeting of the board. This motion is effective June 9, 2000."

2. Approval of FY2001 Student Government Budgets

MOTION

"The Board of Regents authorizes the vice president for finance to review, modify, and approve the student government budgets for FY2001, and to suspend implementation of the activity fee increase proposed for the Ketchikan Campus until the recommendation is approved by the Ketchikan student body. This motion is effective June 9, 2000."

3. Approval of the Distribution Plan for the FY2001 Operating Budget Reference 18

MOTION

"The Board of Regents approves the distribution plan for the FY01 state general fund operating budget appropriation as presented. This motion is effective June 9, 2000."

A report will be given by members representing the Board of Regents on the Alaska Commission on Postsecondary Education.

XI. UA Foundation Report

A report will be given by members representing the Board of Regents on the UA Foundation Board of Trustees.

XII. Future Agenda Topics

XIII. Board of Regents' Comments

XIV. Executive Session

MOTION

"The Board of Regents goes into executive session at _________ A.D.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to:
· Litigation
· Labor
· Land
· Contract Negotiations
and matters that would affect the reputation or character of a person or persons including:
· Personnel Matters
The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately hour(s). Thus, the open session of the Board of Regents will resume in this room at approximately ____ A.D.T. This motion is effective June 9, 2000."

(To be announced at conclusion of executive session)

The Board of Regents concluded an executive session at _____ A.D.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university; and matters that would affect the reputation or character of a person or persons. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, and other university staff members designated by the president and lasted approximately ______ hour(s).